FuriosaAI Partners with LG AI Research for AI Chip Supply, Rejects Meta Acquisition Offer

FuriosaAI, a South Korean AI chip startup, has partnered with LG AI Research to supply its RNGD chip for use in the EXAONE platform. The deal targets key sectors, including electronics, finance, and biotechnology, for diverse applications. This comes after the startup declined Meta's $800 million acquisition offer, citing disagreements over post-acquisition strategy and organizational structure. The partnership is expected to expand FuriosaAI's business beyond South Korea.

FuriosaAI, a South Korean AI chip startup, has partnered with LG AI Research to supply its RNGD chip for use in the EXAONE platform. The collaboration targets key sectors, including electronics, finance, and biotechnology, for diverse applications. This partnership comes after FuriosaAI declined Meta's $800 million acquisition offer, citing disagreements over post-acquisition strategy and organizational structure [2].

The RNGD chip, optimized for running large language models (LLMs), has demonstrated significant performance improvements over traditional GPU-based solutions. LG AI Research reported that RNGD achieved 2.25 times better inference performance for LLMs compared to GPU-based solutions, while also offering significant energy efficiency [1].

The partnership is expected to expand FuriosaAI's business beyond South Korea, as LG AI Research plans to integrate the RNGD chip into its services across various sectors. FuriosaAI CEO June Paik expressed optimism about the partnership, stating that it aligns with the company's mission to make AI computing more sustainable and cost-effective [2].

The deal is notable for several reasons. First, it marks one of the few public endorsements of a rival to Nvidia by a major enterprise. Second, it highlights the growing demand for sovereign AI solutions that allow enterprises to own and control their AI stacks. Finally, it underscores the increasing importance of energy efficiency and cost-effectiveness in AI computing [1].

FuriosaAI and LG AI Research are committed to developing new software features and expanding to additional customers and markets. The partnership is expected to provide a powerful and sustainable AI infrastructure stack for advanced AI applications [1].

References:
[1] https://gamesbeat.com/lg-ai-research-taps-furiosaai-to-get-2-25x-better-llm-inference-performance-vs-gpus/
[2] https://techcrunch.com/2025/07/21/instead-of-selling-to-meta-ai-chip-startup-furiosaai-signed-a-huge-customer/